Goldcorp Secures Camino Rojo Project

Goldcorp has secured an important gold and silver resource near its Peñasquito mine in Zacatecas, Mexico.

(Goldcorp article updated with additional background information on the deal, along with movement in the stock price.)

NEW YORK ( TheStreet) -- Goldcorp ( GG) has secured an important gold and silver resource near its Peñasquito mine in Zacatecas, Mexico.

Goldcorp announced Thursday that it had completed its acquisition of Canplats Resources, securing the Camino Rojo project.

Camino Rojo is situated about 50 kilometers southeast of Goldcorp's Peñasquito mine. It nearly quadruples Goldcorp's total land package in a core district.

Camino Rojo's 3,389-square-kilometer land package includes the Represa Deposit, which has reported measured and indicated resources of more than 3.4 million gold ounces and more than 60.7 million silver ounces.

Each Canplats share will be exchanged for C$4.60 in cash under the deal. Holders of each Canplats share will also receive a distribution from Canplats of one share in a new exploration company with a notional value of C$0.20 for total consideration of C$4.80 per share.